Center for Distance and Independent Study
Personal Finance, One Half Unit

Welcome

Course Introduction

In early 2003, the Federal Reserve System, having just initiated an effort to get U.S. consumers to better educate themselves about financial management, created a public service announcement, wherein Chairman Alan Greenspan stated, ‘‘No matter who you are, making informed decisions about what to do with your money will help build a more stable financial future for you and your family.’’ There is an older adage, however, spoken by Ray Kroc, the founder of the McDonalds^® restaurant chain, which states, “When you’re green, you’re growing; and when you’re ripe, you start to rot.” This certainly applies to learning! Learning is a lifelong process. We continue to grow and become better informed to survive and thrive in this rapidly changing world. Throughout our lives we must make choices and decisions. Unfortunately, when it comes to personal finance, too many individuals make hasty and uninformed decisions. Financial planning is a matter of making responsible, intelligent decisions and setting realistic goals. Financial planning involves money management and includes how we make our money, as well as how we spend it and save it.

The need for money management skills is based on an economic principle of scarcity, which simply states that we have unlimited wants but limited resources. Because our resources (in this case, money) are limited, we must prioritize (plan) and make wise financial decisions in order to fulfill our responsibilities, have a better quality of life, and look forward to a secure future.

This course will assist you in analyzing situations and identifying steps in a decision-making process in order to make informed financial choices. You will develop practical money skills in relation to banking services, saving and investing, credit, budgeting, and consumer spending. You will also create and work with a personal budget and discover ways to save and invest. We will examine the many forms of credit, the importance of a favorable credit rating, and the steps to take in securing a loan.

It is important that we become skilled in the fundamentals necessary to control our finances and take advantage of opportunities, thus minimizing financial risks. Either we control our lives—or others will. If we are ill-equipped to make informed financial decisions, the consequences can be devastating. This course is designed to help you learn to take control of your present and future finances.

Catalog Description: Financial literacy is crucial to the achievement of successful futures by America's youth. This course is designed to help students plan financial goals, understand the requirements for reaching a satisfactory standard of living, and establish financial stability. Lessons include setting goals and making decisions, applying for jobs and planning for careers, earning money, preparing a budget, understanding banking services (check writing, saving, and investing), using credit wisely, buying insurance, purchasing a car, making wise consumer decisions, living on one's own, and planning for retirement. This course fulfills the personal finance course requirements set by the State of Missouri.

Time Limit for Course Completion: 9 months. All assessments must be submitted and graded within this time.

Course Keycode: 6683

Textbooks/Materials

This course does not utilize a textbook. The online lessons and other course components take the place of a traditional textbook.

How to Study for This Course

As you begin this course, ask yourself a very important question: Are you taking the course merely for a credit, or do you want to learn about personal finance? I sincerely hope you really want to learn! Financial planning and money management are an important part of life. What you are learning can affect your well-being and your standard of living. This is not something to learn just so you can pass a test. These are lifelong skills that will affect you forever.

I encourage you to build a good foundation as we move through the lessons. Here is a great way to approach each lesson.

1. Read the title of the lesson.
2. Read the purpose and objectives at the beginning of the lesson.
3. Preview the commentary by reading the subheadings and quickly glancing at the first sentence of each paragraph.
4. Note the boldface words.
5. Read the conclusion section at the end of the lesson.
6. You are now ready to read the lesson. Examine the purpose and objectives again. Read the commentary, and then answer the subheading questions you developed. Use the words in bold to help you answer. If you cannot answer a question, reread the section and try again.
7. Read the lesson title again. Does it have more meaning? Close your eyes and mentally review the lesson, thinking about various points. Then read each objective and answer each statement in your own words. You will be amazed at what you know!
8. Before you begin a new lesson, review the previous one by reading the title, purpose, and objectives. Turn the subheadings into questions and answer those questions. Finally, reread the conclusion. It really doesn’t take a lot of time, and you will build a solid foundation that will make you better informed about personal finance.
9. Every time a new lesson is assigned, review the conclusions of all the previous lessons. This will help you tie the lessons together.
10. Relate money management to real-life situations. The next time you are out shopping, think about the key terms you have learned and apply them to the situation at hand. For instance, the next time you pick up an item to buy, ask yourself the following questions: Is it worth the time and effort it took me to earn the money? Is it a need (essential) or a want (adds pleasure)? Is there a better way to spend my money? By becoming a “thinking spender,” you are well on your way to managing your finances properly for life.

Relax as you go through the learning process. You are not struggling to memorize the details, and yet you will find that they are becoming more and more familiar to you. This learning style is a “whole-part-whole” strategy.

Whole — Get a quick overview of the lesson.
Part — Read the lesson as outlined above and answer questions.
Whole — Review the lesson again.

If you stick with this process, you will soon discover several benefits.

• Your knowledge base is increasing.
• It takes less time to study and to learn.
• You will not need to study as long for a test.
• Money management will become a part of your thinking process.
• You will naturally use what you have learned here in your everyday life.
• The information you learned here will stay with you.

Additional Study Hints

About the Lessons

Each of the eighteen lessons of this course is made up of the following sections:

• The purpose states the author’s aim in designing the lesson.
• The objectives list the specific kinds of knowledge you should gain from the lesson.
• The commentary consists of the author’s discussion of the important topics covered by the lesson.
• The study questions help review the information presented in the lesson.

About the Course Developer

The Course Developer: Sally Ann Nance

Sally Ann Nance has a rich background in teaching business and marketing in high schools and junior colleges in several states. She is an adjunct instructor at the Bolivar Technical College and previously served as a marketing instructor at Bolivar High School in Bolivar, Missouri. She has served as a coordinator for two well-known student organizations: the Future Business Leaders of America (FBLA) and DECA (an association of marketing students). Her DECA students have competed at the international level and served as state officers.

Mrs. Nance obtained her Bachelor of Arts degree from the University of Kentucky and her master’s degree from Iowa State University. She has stayed abreast of curriculum changes by attending seminars and taking classes at a number of universities. She is a member of several state and national business and marketing organizations.

A native Missourian, Mrs. Nance attended high school in Granby, Missouri. Her love of writing began in high school, where she was editor of the high school annual and sports editor for the school newspaper.

Mrs. Nance has worked in business and marketing, and she has received recognition for her strong organizational skills. Her background includes writing not only curriculum but also news articles and radio/television spot announcements for a number of organizations.

Mrs. Nance’s forte has been getting her students, particularly at Bolivar High School, involved in community service endeavors. Through DECA, her students spearheaded Adopt-A-Family at Christmastime, which provided gifts for twenty-five to thirty-five families annually. Other activities included Save Our Furry Friends, in which students collected two or three thousand pounds of pet food annually for the local humane society. They organized a Welcome Wagon which welcomed and supported new students and teachers. Following a tornado in southwestern Missouri, her DECA students organized a PB&J drive by collecting and delivering peanut butter and jelly (and bread) to three devastated towns in the area. They also instituted the Teacher of the Month Award to honor teachers in the high school. Her DECA students were known to be at the forefront if disaster struck, raising money not only for 9/11 but also for individual students whose homes were destroyed by fires. Mrs. Nance strongly believes everyone should be active in his or her community and has used these and other activities to teach the marketing curriculum.

Mrs. Nance and her students presented at two national service-learning conferences, and she was the recipient of the Missouri Lt. Governor’s Service Award. She received the American Red Cross Hero Award and was honored by marketing teachers as a recipient of the DECA Diamond Award. She received the Kindness is Contagious Award at Bolivar High School. She also made presentations at her school district's professional development meetings and presented carousels at the Missouri State Marketing Conventions. At Bolivar High School, Mrs. Nance was a member of the CARE Team, the Principal’s Advisory Board, and the A+ Community-Based Committee. In addition, she served on the Southwest Baptist University Alumni Board and was the DECA District 11 advisor.

Her husband, Lynn Nance, is a retired college basketball coach who has coached teams at the Division I and Division II levels. The Nances have worked closely as Mrs. Nance has handled much of the writing, accounting, and marketing for her husband’s athletic projects, including basketball camps that attracted young athletes from numerous states. They also own horses and are avid trail riders. Mrs. Nance spent a summer in competition with a Missouri Fox Trotter named Missouri Pride. That summer they saw first-place ribbons in all but two competitions, including the Missouri Show of Champions. Competing in the Novice League, Mrs. Nance and Pride won first place at the Missouri Fox Trotter National Competition in Ava, Missouri.

The Nances currently reside in Bolivar, Missouri. They have one son, who is an international airline pilot for a major airline.

Technical Specifications

Online Resources

As you progress through the course, you will find a number of Web sites listed. They provide additional resources about the topics in the lessons. They are for your benefit only, and information from supplemental online resources is not covered on progress evaluations or examinations.

As you progress through the course, you may want to use a search engine to find additional information on specific topics. When entering terms into a search engine, be as precise as possible. For instance, if you are looking for information on interest rates for home loans, “mortgage rates” will give you better results than “interest rates.” Listed below are some of the most common search engines.

• Google
• Yahoo
• MSN
• Ask

Finally, try out these specific Web resources as you make your way through the course. There will be something here for every lesson's content, so be sure to check back often on this list:

• mymoney.gov
  The U.S. Financial Literacy and Education Commission provides financial education resources for all Americans.
• The Motley Fool
  The Motley Fool provides investing, personal finance, and retirement information that aims “to educate, amuse & enrich.”
• Education Resources from the U.S. Treasury
• Federal Deposit Insurance Corporation
• Bureau of Labor Statistics
  This resource from the Bureau of Labor Statistics provides details about hundreds of jobs—training and education needed, earnings, expected job prospects, what workers do on the job, and working conditions.
• Money 101
  This step-by-step guide to gaining control of your financial life is a service of CNN, Fortune, and Money.
• Fed101
  Learn about the Federal Reserve System and economics.
• What is a dollar worth?
  Consumer price index inflation calculator from the Federal Reserve Bank of Minneapolis.
• CredAbility U.
  Learn about avoiding or correcting problems with credit from the Consumer Credit Counseling Service.
• Teen Consumer Scrapbook
  This site was developed by a group of high school students who wanted to share their consumer knowledge. The project is sponsored by the Washington State Attorney General.
• It All Adds Up
  This site includes online games and simulations developed by the National Council on Economic Education.

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